Many studies of the decision to retire found that self-reported work-limiting health increases the probability of retirement. Yet doubts have been expressed as to whether such reported deterioration is a genuine reason rather than a socially acceptable justification for not working. This issue has important implications for public policy. Raising the age at which a person is entitled to the full annual amount of Social Security retired- worker benefits, as legislated by Congress, will cause financial hardship if health problems prevent work; but this legislation will encourage continued work if those reporting health problems are merely offering an excuse for not working. Information on utilization of medical services can determine whether reported work-limiting health problems serve as a rationalization of retirement because health status affects medical care utilization. The proposed analysis, which will use data from the Retirement History Survey, is based on a two-equation model that is designed to test the null hypothesis of rationalization. This null hypothesis specifies that if reported interference of health with work is a rationalization of retirement, then there would be no difference in the demand for medical care between retiring individuals who do not report work-limiting health problems after retiring and those who do. The alternative hypothesis specifies significantly greater use of medical services by the latter group. In addition, this analysis will determine whether persons retiring at younger ages are more likely to retire because of health problems than those who retire at older ages. If this is the case, age at retiring would be negatively associated with use of medical services in contrast with the usual positive correlation between advancing age and medical care utilization.